Page 5 - GLNG Week 11 2021

GLNG COMMENTARY GLNG

imported up to 5.4mn tonnes per year (tpy) of intermittent renewables and alternative
LNG under its initial phase. resources,” Excelerate CEO Steven Kobos
The Albanian and Italian governments signed added.
a permit agreement for the LNG project in 2008,
and construction had been scheduled to begin Political support?
in 2010, with completion scheduled for 2014- US LNG expansion was a cornerstone of the
2016. But progress stalled and the project was Trump administration’s foreign policy. US
eventually scuppered. energy and diplomatic officials toured Europe
Albania does have other options for gas sup- during the course of last year, seeking to carve
ply, but those too present challenges. It could out a space for US gas in a market dominated by
obtain gas from Azerbaijan via TAP, but the US adversary Russia. New LNG import projects
pipeline’s capacity is already fully booked by to handle these supplies were proposed in Mon-
customers in other European countries. It is set tenegro, Belarus, Portugal and other countries Albania does
to undergo an expansion, bringing its capacity lacking regasification capacity.
to 20 bcm per year, but market tests are yet to These overtures culminated in a promise in have other
confirm sufficient interest in the project. February 2020 of $1bn in financing to help options for gas
“While we’re at the early stages of exploring Central and Eastern European countries
this opportunity, ExxonMobil’s global resources wean themselves off Russian gas and import supply, but those
and reliable LNG supply chain can help Albania more US LNG instead, by developing the
meet its fast-growing demand for natural gas region’s infrastructure. The funds were to too present
and ensure long-term supply security,” the US come from the Three Seas Initiative, a fund
firm’s LNG strategic and portfolio manager, Ed involving 12 EU member states in Central and challenges.
Austin, commented. Eastern Europe that was set up in 2016 largely
ExxonMobil is developing an LNG supply to counter the countries’ economic reliance
portfolio of some 12mn tpy in size at projects in on Russia.
Papua New Guinea, Mozambique and the US. Whether or not this funding will come
Excelerate, meanwhile, is a leading operator of through now that there is a different adminis-
floating storage and regasification units (FSRU). tration in Washington is unclear. President Joe
Its units have been deployed at multiple loca- Biden has adopted a decidedly different energy
tions in the Americas, Asia and Europe. policy to his predecessor, and is less likely to be
“As Albania looks to improve energy secu- so supportive of US LNG overseas. And such
rity and resiliency, we are confident that an support will be key for projects like the Albania
LNG solution would provide reliability to the LNG terminal to be realised, especially consid-
country’s power grid, while complementing ering the EU’s waning support for fossil fuels.™

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